Precision gearbox market growth depends on Eurozone, China growth rates

Sharp increase in sales in 2012 could reverse if global economy falters

12/26/2012


Shipments of precision geared products (gearboxes and geared motors with backlash ratings of less than 20 arcminutes) were nearly 80% higher in 2012 compared to 2009 levels. However, uncertainty about the Eurozone economy and China’s decelerating economic growth are the leading factors in the more than one percent decline expected in precision geared product shipments in 2013. IMS Research projects the market for precision geared products to reach an estimated value of nearly $1.7 billion with over 1.8 million units shipped in 2013.

Precision gearbox shipments, which accounted for more than 95% of the precision geared products market in 2012, increased by more than 70% from 2009 levels due to pent-up demand for servo-driven machinery and increased access to capital. A significant amount of investments were made in the automotive industry, where demand for industrial robots used in the production of vehicles spurred a sharp increase in precision planetary gearbox shipments.

Precision planetary gearboxes accounted for more than 82 percent of precision geared products shipped in 2011. Investment in new automobile manufacturing facilities is expected to continue, however at lower rates than those seen in 2010 and 2011. Sales of electric industrial robots to the automobile industry have slowed considerably in 2012 due to lower of demand for Japanese products from China and continuing weakness in the Eurozone economy.

“Chinese industrial robot manufacturers are still warming up to the idea of using high-precision geared products in robots,” said IMS Research Analyst Bryan Turnbough. “Chinese manufactures tend to be more focused on the cost of the system than achieving the highest degree of precision. Although China’s automotive industry continues to grow strongly, Japanese suppliers of industrial robots that use precision geared products are finding it harder to compete as effectively with Chinese hydraulic industrial robot manufacturers in the region.”

Precision gearbox and geared motor shipments into industry sectors such as materials handling, woodworking and printing are also expected to grow at a slower pace in 2013 following the fulfillment of pent-up demand that resulted from the 2009 recession. Although precision geared product shipments to the food, beverage and tobacco industries are expected to decline in 2013, positive signs of economic growth in the Eurozone and China could mean further growth of precision geared product sales from 2014 to 2016.

“The future performance of the precision geared products market will depend greatly on what happens in 2013,” said Turnbough. “If current global economic conditions persist then it could mean further deceleration in precision geared product shipments for several years because of the psychological impact that this slow recovery is having on industrial equipment end-users and OEMs. A bleak outlook makes it harder for them to invest in high-precision technology despite cost savings that could occur over time.”

Precision geared product manufacturers could see their shipment growth accelerate through 2016 if the Eurozone economy begins to strengthen and the United States or China has a marked rise in growth. Courtesy: IMS Research

Precision geared product sales to the robotics and machine tools industries, which accounted for approximately 39% of all precision geared products shipped this year, are forecast to grow at a mere 3.5% in 2013. However, the slowdown in these industry sectors is not projected to cause the total market for precision geared products to decline through 2016.

According to Turnbough, it is possible that precision geared product manufacturers could see their shipment growth accelerate through 2016 if the Eurozone economy begins to strengthen and the United States or China has a marked rise in growth.



No comments
Consulting-Specifying Engineer's Product of the Year (POY) contest is the premier award for new products in the HVAC, fire, electrical, and...
Consulting-Specifying Engineer magazine is dedicated to encouraging and recognizing the most talented young individuals...
The MEP Giants program lists the top mechanical, electrical, plumbing, and fire protection engineering firms in the United States.
High-performance buildings; Building envelope and integration; Electrical, HVAC system integration; Smoke control systems; Using BAS for M&V
Pressure piping systems: Designing with ASME; Lab ventilation; Lighting controls; Reduce energy use with VFDs
Smoke control: Designing for proper ventilation; Smart Grid Standard 201P; Commissioning HVAC systems; Boilers and boiler systems
Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Consulting-Specifying Engineer case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.

Protecting standby generators for mission critical facilities; Selecting energy-efficient transformers; Integrating power monitoring systems; Mitigating harmonics in electrical systems
Commissioning electrical systems in mission critical facilities; Anticipating the Smart Grid; Mitigating arc flash hazards in medium-voltage switchgear; Comparing generator sizing software
Integrating BAS, electrical systems; Electrical system flexibility; Hospital electrical distribution; Electrical system grounding
As brand protection manager for Eaton’s Electrical Sector, Tom Grace oversees counterfeit awareness...
Amara Rozgus is chief editor and content manager of Consulting-Specifier Engineer magazine.
IEEE power industry experts bring their combined experience in the electrical power industry...
Michael Heinsdorf, P.E., LEED AP, CDT is an Engineering Specification Writer at ARCOM MasterSpec.